Net Promoter Scores for Your Ecommerce Store in 2021

Using Net Promoter Scores for Your Ecommerce Store:

Can you identify your most important customers? Can you identify and address customer dissatisfaction as quickly as possible? And lastly, do you have a way to track increases or decreases in customer satisfaction over time?

While customer satisfaction is an abstract concept that needs to be measured quantitatively, there is one powerful tool that e-commerce businesses can use: the Net Promoter Score (NPS). The Net Promoter Score, used by companies such as Apple and Intuit, helps companies improve and increase customer loyalty over time. In this post, we have given an overview of NPS so that you can decide if it is also suitable for your e-commerce business.

What is the promoter’s net score?

The net promoter score is the percentage of people who promote your business (whether or not an actual promotion – ‘Promoters’ is simply defined as people who would recommend your business to a friend) minus the percentage of ‘entrepreneurs’. The score is unique because it is one of the first reliable and measurable ways to consistently understand customer loyalty.

To calculate the net promoter score of a business, customers are asked to rank on a scale of 0 to 10 (with a probability of 10) based on the following question: What is the probability that you (company) a friend or colleague is? recommended?

• Customers who answer 9 and 10 are classified as promoters. This level of loyalty is strongly associated with more frequent purchases, higher spending per transaction, the introduction of more customers, and lower consumption than any other customer group.

• Clients with a score of 0 to 6 are judged as opponents that promoters tend to reject in their behavior and consumption habits.

• Finally, customers who answer 7 or 8 are classified as passive. These customers can go anywhere and it is your job to turn them into promoters.

Once a business identifies which customers are promoters and what barriers, it can begin to develop strategies to improve the overall loyalty of customers and investigate why promoters are not like the company and what does not harm the abusive team.

The benefits of NPS

In his book The Ultimate Question, Fred Reichheld, along with Bain & Co., and Satmetrix, The Net Promoter Score, discuss the need for NPS as follows:

Businesses spend a lot of time and money on sophisticated tools to measure customer satisfaction. But they measure the wrong things. The best indicator of revenue growth can often be captured in a survey question: would you recommend this business in two years of diverse testing? Questions about surveys that link responses to actual customer behavior (buying patterns and referrals) and ultimately also to business growth among competitors.

In other words, Reichheld asked a specific question: Would you recommend this company to a friend? – it was more about retention and revenue growth than any other measure or demand. The simplicity and reliability of the application enable businesses to continuously monitor customer loyalty.

Other NPS benefits include:

• It is an easy number to measure compared to the competition

• Companies can recognize trends and respond to them as quickly as possible

• It is easy to use and inexpensive to implement

• The central theme is relevant to all customers (and employees when looking at employee happiness)

• Because of its universal relevance, it’s a great way to look at your entire corporate image or study your individual target audience.

Introduction to NPS

Electronic marketers or those interested in using the Net Promoter Score can do the following:

1. Design your survey

If you have a CRM system, if possible, look for a registration platform integrated with your CRM software. If you don’t use a CRM system, you can find many free or accessible research tools online. Once you’ve found the software that’s right for you, create a survey with two questions:

• How likely are you (your company) to recommend a friend or colleague? (scale from 0 to 10)

• What did we do to reach the leaderboard? (open text box)

You can also ask other questions, but we don’t recommend it. You submit this customer survey regularly and the more questions you ask, the more likely your customers are to get bored and leave unanswered. Even if they do, they can overcome the problems if there are too many options.

2. Distribute your survey

Send an email directly to your customers with a link to the survey. While a sign-up link in your email is an option, keep in mind that people who have signed up for your newsletter have already shown loyalty by signing up, so you can’t read the truth. It’s best to email your customers directly with a survey link.

You can also choose to track purchases, customer service calls, and other interactions with a search link. Make sure the survey takes less than five minutes to complete and each response is read.

3. Analyze your results

Check your results regularly. What do the promoters think of you? What opponents does he dislike? Where are these opportunities for improvement? If necessary, contact selected customers from each group to further discuss your comments.

4. Make a plan

Identify and prioritize three or five ways your company can create more promoters and neutralize more opponents. Connect to specific goals that are achievable, current, and measurable.

5. Report your progress

As you make improvements based on the feedback you receive, communicate your progress to employees and customers in monthly newsletters. Showing your customers that you have listened to their comments and used them to make changes increases goodwill and loyalty.

6. Repeat

Repeat this process at least once a quarter – many companies send out surveys even more often. Make this survey a regular part of your business and take the time each quarter to analyze trends and build your plan.

Closing

Don’t be fooled by the easy implementation or simplicity of the questions; the Net Promoter Score is a powerful framework that promotes practical insights and results. With continuous improvements over time, you can lower your barriers and grow your loyal and satisfied customer base. Once you reach this goal, not only will your score improve; you will also remember why you enjoy running your business.

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